A New Forecast Policy Scenario Should Inspire Robust Climate Risk Measurement By Financial Institutions in Emerging & Developing Countries

The effects of the Paris Agreement ratchet have been the upgrading of nationally determined contributions and new Net Zero targetsPolicies to drive implementation towards these longer-term goals will impose a cost on emitted greenhouse gases in line with their social and environmental impacts that will cause twin shocks for emerging & developing countries of domestic policy risk to meet climate goals and trade-related carbon tariffs introduced by trade partnersFinancial institutions in emerging & developing countries will face increased risk and should be preparing now for how they plan to track, measure and mitigate the risks and comply with future disclosure requirements from regulators and investors

The Inevitable Policy Response (IPR), an initiative of the Principle...